Step 1: Identify the relevant industry for "ENGIE".
ENGIE is a major French multinational electric utility company, operating in electricity generation and distribution, natural gas, and renewable energy. Based on the provided S&P methodologies, ENGIE fits into the "Regulated Utilities" and "Unregulated Power And Gas" sectors (as it operates in both regulated networks and unregulated generation/retail). For the purpose of financial ratio calculations, the general corporate baseline formulas apply unless specific industry adjustments (like purchased power adjustments, seasonal inventory netting, or proportional consolidation of JVs) are explicitly triggered by data. We will use the baseline formulas, adjusting for hybrid debt which is relevant for utilities.

Step 2: Estimate the 2021 "Adjusted_EBITDA".
Formula: Adjusted_EBITDA = EBITDA (reported or reconstructed) + adjustment_leases + nonrecurring_losses - nonrecurring_gains ± pension_adjustments ± joint_venture_proportional_EBITDA ± other_normalization_adjustments.
- Reported "Current Operating Income Including Operating Mtm And Share In Net Income Of Equity Method Entities" (proxy for EBIT): 6,916,000,000 EUR
- "Depreciation Amortization And Provisions": 4,840,000,000 EUR
- Reported EBITDA = EBIT + D&A = 6,916,000,000 + 4,840,000,000 = 11,756,000,000 EUR
- Nonrecurring items: "Impairment Loss" (+1,028M), "Restructuring" (+204M), "Other Income/Expense from Subsidiaries" (-1,107M gain), "Other Non Recurring Items" (+69M loss). Net nonrecurring loss = 1,028 + 204 - 1,107 + 69 = 194,000,000 EUR.
- Reconstructed EBITDA = 11,756,000,000 + 194,000,000 = 11,950,000,000 EUR.
- No specific lease or pension adjustments are quantified. Under IFRS, JVs are equity accounted; S&P often proportionally consolidates them for utilities, but without specific cash flow data to separate JV EBITDA/D&A, we rely on the reported figures which already include the share in net income.
- 2021 Adjusted_EBITDA = 11,950,000,000 EUR.

Step 3: Estimate the 2021 "FFO".
Formula: FFO = Adjusted_EBITDA - cash_interest - cash_taxes.
- Cash interest: "Interest Paid Classified As Financing Activities" + "Interest Received On Cash And Cash Equivalents" = 719,000,000 - 52,000,000 = 667,000,000 EUR.
- Cash taxes: "Income Taxes Paid Refund Classified As Operating Activities" = 603,000,000 EUR.
- 2021 FFO = 11,950,000,000 - 667,000,000 - 603,000,000 = 10,680,000,000 EUR.

Step 4: Estimate the 2021 "Adjusted_Debt".
Formula: Adjusted_Debt = (reported_debt + leases + pension_deficit + guarantees + hybrid_debt_portion + other_debt_like_items) - eligible_cash.
- Reported Debt: "Longterm Borrowings" + "Current Borrowings And Current Portion Of Noncurrent Borrowings" = 30,458,000,000 + 10,590,000,000 = 41,048,000,000 EUR.
- Hybrid debt portion: ENGIE has "Deeply Subordinated Perpetual Notes" (3,767,000,000 EUR). S&P typically classifies 100% of these as equity under their hybrid criteria, so they are added to Adjusted Debt. Adjusted Debt = 41,048,000,000 + 3,767,000,000 = 44,815,000,000 EUR.
- Eligible Cash: "Cash And Cash Equivalents" (13,890,000,000 EUR). We deduct a standard portion; c. 50% is common for utilities, so we deduct 6,945,000,000 EUR.
- 2021 Adjusted_Debt = 44,815,000,000 - 6,945,000,000 = 37,870,000,000 EUR.

Step 5: Calculate the 2021 "Adjusted_Debt / Adjusted_EBITDA" ratio.
- Ratio = 37,870,000,000 / 11,950,000,000 = 3.17x.

Step 6: Calculate the 2021 "FFO / Adjusted_Debt" ratio.
- Ratio = 10,680,000,000 / 37,870,000,000 = 28.20% (0.2820).

Step 7: Estimate the 2022 "Adjusted_EBITDA".
- Reported EBIT: 5,367,000,000 EUR.
- D&A: 5,187,000,000 EUR.
- Reported EBITDA = 5,367,000,000 + 5,187,000,000 = 10,554,000,000 EUR.
- Net nonrecurring loss: Impairment (+2,774M) + Restructuring (+230M) - Other Inc/Subs (-91M gain) + Other Non Recurring (+1,328M loss) = 4,241,000,000 EUR.
- Reconstructed EBITDA = 10,554,000,000 + 4,241,000,000 = 14,795,000,000 EUR.
- 2022 Adjusted_EBITDA = 14,795,000,000 EUR.

Step 8: Estimate the 2022 "FFO".
- Cash interest: 822,000,000 - 194,000,000 = 628,000,000 EUR.
- Cash taxes: 1,504,000,000 EUR.
- 2022 FFO = 14,795,000,000 - 628,000,000 - 1,504,000,000 = 12,663,000,000 EUR.

Step 9: Estimate the 2022 "Adjusted_Debt".
- Reported Debt: 28,083,000,000 + 12,508,000,000 = 40,591,000,000 EUR.
- Hybrid debt portion: Deeply Subordinated Perpetual Notes (3,393,000,000 EUR). Adjusted Debt = 40,591,000,000 + 3,393,000,000 = 43,984,000,000 EUR.
- Eligible Cash: 15,570,000,000 EUR. Deducting 50% (7,785,000,000 EUR).
- 2022 Adjusted_Debt = 43,984,000,000 - 7,785,000,000 = 36,199,000,000 EUR.

Step 10: Calculate the 2022 "Adjusted_Debt / Adjusted_EBITDA" ratio.
- Ratio = 36,199,000,000 / 14,795,000,000 = 2.45x.

Step 11: Calculate the 2022 "FFO / Adjusted_Debt" ratio.
- Ratio = 12,663,000,000 / 36,199,000,000 = 35.00% (0.3500).

Step 12: Classify the year-on-year credit trend.
- Signal 1 (Leverage): Change in Adjusted_Debt / Adjusted_EBITDA = 2.45x - 3.17x = -0.72x. Since -0.72x ≤ -0.2x, Signal 1 is "Improving".
- Signal 2 (Cash-flow coverage): Change in FFO / Adjusted_Debt = 0.3500 - 0.2820 = +0.0680 (or +6.80 percentage points). Since +0.0680 ≥ +0.03, Signal 2 is "Improving".
- Both signals agree, indicating an "Improving" credit trend.

<answer>Improving</answer>